Govt constitutes committee to examine disputes over formation of KABCO

Thiruvananthapuram: The Kerala government has formed a committee to resolve the disagreements between the Agricultural and Industrial Departments over the formation of Kerala Agro Business Company (KABCO). The committee will look at the company's goals and objectives before setting an agenda on the matter.  

Meanwhile, discussions are ongoing about the parent department of the company. According to the Kerala Government's rules of business, the Industrial Department is responsible for granting authority to form a company and engage in commercial activity. 

When the Kerala Cabinet discussed the matter on Wednesday, agricultural minister P. Prasad also stated that the KABCO company is under the Industrial Department, leading to a disagreement with Agricultural Department. Industrial Minister P Rajeev argued that KABCO company and its sales activities shall come under the realm of the industries department. He also added that the formation of KABCO, as of now, stands in violation of the ‘rules of business’. CPI ministers lined up in support of Rajeev as he stated his concerns in the cabinet meeting.  

Following this, a decision was taken to constitute a committee to examine the matter. 

The committee, headed by Chief Secretary, includes Agricultural Production Commissioner and Industrial Secretary. Further, various officials of the agricultural and industrial departments will be members of the committee. Following a thorough examination of the company's objectives and goals, a proposal will be submitted to the Kerala Cabinet for approval to establish the company.

Kerala Agro Business Company (KABCO), which aims at the welfare of farmers and farming groups, will deal with procuring, processing, and marketing of local farm products. So far, 23,000 farming communities have been constituted by Krishi Bhavan. 

The agricultural department had constituted an 11-member expert committee for designing a blueprint for the project. 

Kerala produces approximately 16 lakh tonnes of vegetables every year. However, there are no proper storage facilities in the state as of now. The agriculture department is hoping to put an end to the ordeal, by opening up several agro parks under KABCO.  The department is also considering the possibility of allowing farm-producing companies to hold shares in KABCO.